Easton Hospital settles health care fraud allegations for $662,000

Easton Hospital has agreed to shell out $662,000 to settle allegations of health care fraud, according to a news release Monday from the federal government.

Easton Hospital has agreed to shell out $662,000 to settle allegations of health care fraud, according to a news release Monday from the federal government. (FILE PHOTO, THE MORNING CALL)

Anthony SalamoneOf The Morning Call

Easton Hospital must shell out $662,000 in a settlement over allegations of health care fraud.

Easton Hospital has agreed to shell out $662,000 to settle allegations of health care fraud, according to a news release Monday from the federal government.

The U.S. Attorney's Office in Philadelphia contends Easton Hospital billed Medicare for certain medical procedures performed by urologist Dr. Thomas Walden that were not performed, were only partially completed or were medically unnecessary.

Two former Easton Hospital employees told the government they observed urological procedures and tests performed by Walden for which the government should not have been billed by the hospital.

Easton Hospital denies the allegations, according to the news release.

"Easton Hospital has a robust compliance program and is committed to providing our patients with quality care," hospital spokesman Stephen Wilson said. "As part of our compliance program, we voluntarily repaid certain Medicare claims prior to the government's investigation."

Wilson also said Walden has not been affiliated with Easton Hospital since June 2010.

The two ex-workers, David Kasprzak and David Heaton, filed whistleblower complaints under the federal False Claims Act, according to the release. They will receive an unspecified share of the hospital's payment.

"The United States Attorney's Office for the Eastern District of Pennsylvania places a high priority on criminal and civil enforcement in cases involving health care fraud," said U.S. Attorney Zane Memeger in a statement. "Health care fraud wastes tax dollars, harms patients and drives up medical costs for everyone."